Vedant Fashions (MANYAVAR) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 sales reached INR 3,341 million, up 24% year-over-year, with business normalizing post a weak Q1 due to negligible wedding dates.

• Vedant Fashions is India's largest men's wedding and celebration wear company by revenue, OPBDIT, and PAT, with a dominant omni-channel presence and a diversified brand portfolio including Manyavar, Mohey, Twamev, Diwas, and Mebaz.

• The company continues to expand its retail footprint, now covering 1.70 million sq. ft. across 650 EBOs in 255 cities globally, including 16 international stores.

• New brand launches and marketing campaigns, including Divas by Manyavar and Mohey's repositioning, aimed at expanding customer base and brand relevance.

• Board approved unaudited standalone and consolidated financial results for Q2 and H1 FY25, with continued focus on branded fashion apparel and accessories.

Financial highlights

• Q2 FY25 revenue from operations was INR 2,679.45 million (consolidated), up 22.7% year-over-year; PAT rose 37.3% to INR 677.46 million.

• Gross margin stood at 67.9%, EBITDA margin at 45.4%, and PAT margin at 25% for Q2 FY25.

• H1 FY25 revenue from operations was INR 5,078 million (consolidated), with PAT of INR 1,294 million and PAT margin of 25.5%.

• Standalone basic EPS for Q2 FY25 was INR 2.73, up from INR 2.02 in Q2 FY24.

• Cash and cash equivalents (consolidated) increased to INR 440.31 million as of September 30, 2024.

Outlook and guidance

• Positive outlook for H2 FY25, driven by normalized business, strong wedding calendar, and festive demand.

• Growth strategy focuses on retail expansion in India and abroad, up-selling and cross-selling, targeted marketing, and disciplined acquisitions.

• Retail area expansion expected to remain in the 13-16% range in the midterm, with a pragmatic approach to new store openings.